Multi-State Credit and Multi-Purpose Societies: New Norms for Granting NOCs

The Union Ministry of Cooperation has announced new Standard Operating Procedures (SOPs) for the registration of new multi-state credit and multi-purpose cooperative societies, as well as for extending the operational scope of existing ones. These guidelines also cover the issuance of No Objection Certificates (NOCs) by Registrars of Cooperative Societies (RCS) in states and union territories.

The circular, issued by the Office of the Central Registrar of Cooperative Societies on September 22, 2025, aims to bring greater transparency, accountability, and uniformity in the NOC process. The new framework addresses various challenges that registrars were facing in granting approvals.

Key Guidelines

Under the revised norms, the following points must be ensured before granting NOCs for registration of multi-state cooperative societies:

• Background Check of Promoters: The promoters, including the Chief Promoter, must undergo verification. KYC documents such as proof of address, ID, and a character verification report must be submitted.

• Undertaking by Promoters: Promoters must declare that they are not engaged in money lending businesses and are not wilful defaulters in any financial institution.

• Member Verification: At least 50 members from the concerned state or UT must complete KYC verification through official reports.

• Name Verification: It must be confirmed that no other society with the same name and scope of activities is already registered in the respective state/UT.

• Operational Limit: At the time of registration, the maximum operational area will be restricted to two adjacent states or UTs.

Conditions for Granting NOC

The circular also specifies that the NOC shall only be issued if the following conditions are met:

• Compliance with cooperative laws and regulations of the concerned state/UT.

• Any amendments in bye-laws made by the Central Registrar must be submitted to the state registrar.

• Written permission from the state/UT registrar is mandatory for opening new branches or changing the society’s name, address, or headquarters.

• Contact details and ID proofs of all directors/promoters and the Chief Promoter must be submitted to both the State Registrar and the District Magistrate of the concerned district.

• Reports on society elections or management committee changes must be immediately communicated to all registrars concerned.

• Multi-purpose societies engaging in credit activities will also have to comply with all provisions applicable to credit societies.

• A notice board at the society’s office must clearly display the name of the registering authority along with a disclaimer that the government is not responsible for the society’s internal affairs.
  

Conclusion

The Ministry has directed all state and union territory registrars to ensure strict compliance with these new guidelines. With these measures, the government intends to curb irregularities in registrations, safeguard the interests of members, and strengthen the cooperative sector’s credibility.

For more information, contact:
Cooperative Bhavan
📞 9338333303, 77910 00200